Zim Parastatals Owe The Country Half A Billion In Unpaid Taxes – Time For Reform, Please

It’s pretty much saddening when someone tells you Zimbabwe state-owned companies, known as parastatals, owe the country half a billion in unpaid taxes. I mean, look, does this even make sense?

This is money that could be used for so many developmental projects in the country.

The parastatals in Zimbabwe are not performing. And it’s sad. In such a moribund state, the top executives are enjoying themselves.

Parastatals in Zimbabwe owe the Zimbabwe Revenue Authority (ZIMRA) over $491 million in unpaid taxes. It’s something I don’t find cool, really. We can do better.

Eddie Cross, an opposition politician and economist had this to say, “It is a black hole and for government this highlights their dilemma, ‘how do we stop the public sector bleeding government in this way?’, because that is what it entails. Parastatals are using resources, which would otherwise be for key social services and health, I mean that is nearly double the health budget for the country.”

The losses which these parastatals in Zimbabwe are making are extremely shocking, at around $300 million.

Zimbabwe has 78 state-owned enterprises with a capacity to contribute 48% to the country’s gross domestic product. See…but look at what corruption and mismanagement do to us. We remain stuck. Stagnant. Walking still.

It’s been said that Zimra is not that serious when it comes to be strict with Zimbabwean parastatals.

If laws are strictly enforced as regards tax collection, we can do better as a country.

It’s time these parastatals start performing well.

Accountability, transparency and meritocracy must be of huge importance in the running of Zim parastatals. It’s time for reform.